US Moves to Forfeit $25M in Crypto Linked to International Fraud Schemes

What happened: U.S. prosecutors filed five civil forfeiture complaints seeking over $25 million in cryptocurrency tied to global romance, investment, and recovery-fraud cases. The actions, part of the Scam Center Strike Force, trace funds through more than 670 victim transactions, with laundering networks operating primarily in Southeast Asia and IPs traced to China, Malaysia, and Cambodia. The task force has now recovered over $800 million since its launch in November 2025.

Why it matters: The scale and international reach of these frauds highlight persistent vulnerabilities in crypto’s cross-border flows. While the cumulative $800 million in recoveries signals improved law enforcement capabilities, the lack of disclosure on specific tokens or wallet addresses limits transparency for affected users and compliance teams. The U.S. continues to prioritize asset recovery from crypto-enabled scams, but the underlying laundering infrastructure remains resilient.

Source: The Block